In Indore, sales of property led by under construction residential units and affordable housing segment have picked up after reduction in the tax levy. According to Confederation of Real Estate Developers Associations of India (CREDAI), the sale of the property is likely to be 10% more in April 2019 in comparison to the sale of property in April last year. Atul Jhawar, secretary of CREDAI said that ‘the demand for property is moving up gradually as high taxation was a major blockage in minds of the consumer. Affordable segment and independent houses are fetching a good demand.’ He also said as there is a reduction in tax component, it would surely lift sales of property in April as consumers who were on a wait and watch mode have also come into the market.
According to many property dealers, the increase in sales for under construction housing will pump in money to those projects that were stuck due to financial constraints. It is also noted that, before April, plots were in demand but now with such a sharp reduction in taxes, under construction projects are being more enquired by first time home buyers. Most popular areas, where demand for property is very high are Dewas Naka, Talawali, Ujjain Road, Mhow, and Rau.
Builders are saying that the restriction on input tax credit as part of newly reduced levies has squeezed profitability of realtors. Now, as the GST rates for affordable housing have been reduced from 8% (including full input tax credit) to 1% (without input tax credit). For others, the rates have been reduced from 12% (including full input tax credit) to 5% (without input tax credit).
Tags : #Affordable #Housing #Independent #Houses #Indore #Demand